Charities Act Valuations – why are they required?
Under the Charities Act 2011, when registered charities engage in property transactions such as selling, leasing, or transferring land or property, they are often required by law to obtain a Charities Act Valuation. This applies to disposal of an interest in land for a term exceeding seven years.
The aim of this legislation is to ensure charitable assets are properly managed and disposed of at fair value. Currently, there is no legal requirement to obtain a Charities Act Valuation for an acquisition, however, it is still recommended to ensure a fair price is being paid for an asset.
The surveyor undertaking the valuation must be a member of the Royal Institution of Chartered Surveyors (RICS) and must act independently of the charity. The valuation report will provide an opinion of Market Value and assesses whether the proposed transaction is in the charity’s best interests. This is particularly important in fluctuating markets or where there may be concerns about conflicts of interest or transactions with connected parties. In addition to providing a Market Value of the property, the surveyor will advise on the best marketing strategy and the most appropriate method of sale to obtain the optimum value for the asset.
The Act ensures that trustees act with due diligence, receive the best possible terms for the charity, and protect its assets. Whether you’re selling, leasing, or transferring property, seeking expert valuation advice can protect your charity’s long-term interests.
Our Charities Act Valuation reports provide trustees with an overview of the property market and the risks and opportunities associated with a transaction, which supports informed decision-making. Our experience and expertise in Charities Act Valuations, ensures that we provide trustees with the right advice to maximise the potential of their asset, in the best interest of the charity.
for more information, please contact our Valuation team.
